The Right Value Proposition Can Boost Profits
Can you state your business’ value proposition in a few short sentences?
If not, how are you marketing effectively and discussing your company’s products or services with potential customers?
Every business needs a value proposition. This is the promise a business makes to customers on what it can deliver. Customers purchase benefits and solutions to problems. If you cannot get this message across to potential customers, why should they purchase products or services from you? Absent an on-target value proposition, potential customers probably will not purchase from you, and your competition will have just gained a new customer…one that could have been yours if the right message was delivered.
Allow Product or Service Differentiation to Determine the right Value Proposition
With a multitude of products and services on the market that are essentially the same, differentiation can be the deciding factor whether a sale is made or not. Normally, the first thing a prospective customer sees whether online, in print, or hears in person is a product or service value proposition and uniqueness compared to similar items on the market. If you can’t think of something unique about your product or business or what distinguishes your business from the competition, then now is the time to create a uniqueness. Stand out from the crowd rather than being a part of the crowd.
Clear, Concise, and True Message – hallmark of the right Value Proposition
While it is great to know all the industry jargon and technical aspects of what your business is selling, customers are not really interested in that. They want to know, “How will your product or service benefit me?” With this in mind, a company’s value proposition must be clear and concise that normal, every day customers will understand. Considering that most customers spend very little time reviewing online content, printed media, or are distracted while listening, a short straight-to-the-point explanation is the most effective means to communicate a value proposition. Equally important is the truthfulness of statements made. A value proposition should never be boastful or misleading, which is a great way to create dissatisfied customers.
Don’t Think Like the Owner when crafting a Value Proposition
Think like a customer and not like an owner. Mentally trade places with a customer of your business and start asking questions.
• What exactly is the product or service this business is trying to sell me?
• How do I benefit from purchasing this product or service?
• What is unique about this company’s product, service, or business?
• Why should I buy from this business versus buying from a competitor?
• Does this company’s product or service target me as a purchaser?
Make sure that your value proposition answers these questions. If not, it needs work.
When All Things Are Equal
When all things are equal between you and your competition, what do you do? Make things unequal! Make your value proposition better in some way…even a small way…than your rival. Maybe, it’s free shipping, extended warranty, follow-up support, liberal refund policy, or discount on first purchase. This is an area for your imagination. Check out unique value propositions in larger businesses than yours, leaders in your field, or even other industries all with the purpose to search for ideas that you might implement in a similar fashion in your own business.
Ask Your Customers
Don’t waste a valuable source of information…your customers. They know your product and service, so ask key customers what they think about your company’s value proposition. Does it get the point across that you’re trying to make? Perhaps, you see things a bit different than how your customers see your product or service. When you find there’s a consensus (good or bad), then you’ll know if your value proposition is on target or needs adjustment. Never underestimate the “value” of a good value proposition!